SEC seeks to appeal part of the recent Ripple case verdict, claiming it doesn't align with current securities laws. The SEC accused Ripple of distributing unregistered securities worth $1.3 billion via XRP tokens. Judge Analisa Torres ruled that selling XRP to institutional investors violated SEC rules but not to retail investors. The SEC argues the ruling creates an artificial distinction between investor expectations. Terraform Labs and Do Kwon's lawyers cited the Ripple decision to dismiss the SEC's lawsuit against them. The SEC charged Terraform Labs and Kwon with a multi-billion dollar fraud in February. The SEC believes the Ripple decision supports their position regarding institutional buyers investing in Terraform' assets. Former SEC lawyer John Reed Stark called verdict "shaky" and sees potential for a successful appeal